McCollum v. State Tax Commission

Edward H. Howell, Judge.

The above cases were consolidated for trial and briefing. The two issues before the court are (1) whether plaintiffs George and Mabel McCollum are subject to a negligence penalty under ORS 314.405(5) (a) for failing to report the sale of a cattle ranch in their tax return for 1959 and (2) whether the plaintiffs are entitled to treat the sale in 1962 of certain timber or logs as a capital gain.

ORS 314.405(5) (a) allows the defendant commission to assess a penalty of five percent of the deficiency if such deficiency is due to negligence in the preparation or filing of…